Alliance Global profit down on sluggish brandy, leisure biz

Billionaire Andrew Tan-led Alliance Global Group Inc. on Wednesday reported slightly lower earnings in the first six months of the year on lower gains from its brandy and leisure businesses.

Alliance Global on Wednesday said net profit during the semester reached P8.8 billion, down 4 percent.

Revenues inched up by 8 percent to P107.5 billion on a “resurgence in activities” across its businesses.

READ: Alliance Global profit jumped 20% to P30.3B in 2023

Emperador Inc., its brandy and whisky arm, booked lower profits during the period due to tight competition in the domestic market.

Its net income dipped by 19 percent to P3.8 billion, while revenues declined by 7.7 percent to P28.6 billion.

Travellers International, Alliance Global’s leisure and tourism arm and the operator of Newport World Resorts, booked lower profits despite an improved second quarter.

Its net income dipped by 16 percent to P434 million versus a year ago as revenues declined by a third to P10.9 billion.

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Meanwhile, property arm Megaworld Corp. remained the conglomerate’s income and revenue driver.

Megaworld’s earnings in the first half grew by 9 percent to P8.55 billion as more customers took interest in its township projects.

‘Strong recovery’

Revenues expanded by 22 percent to P39.1 billion, buoyed by a 30-percent surge in real estate sales.

In the second quarter, Alliance Global said it saw a “sustained rise” in contributions from Megaworld on heightened consumer spending.

“The Alliance Global Group mustered a strong recovery in the second quarter of the year despite the generally sluggish global economy, as well as the challenges brought about by elevated inflation, interest rates and an unstable currency,“ Alliance Global president and CEO Kevin L. Tan said. —Meg J. Adonis

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